Quick start guide to limited company contracting: seven steps

Let’s assume you’ve taken up either our offer of a free limited company bank account or our offer to set up a limited company free of charge with a free bank account to boot. Great! But what next?

Here’s seven steps we believe that any good ‘quick start guide’ for limited company contracting should contain, writes Nick Biggam, commercial director at Zempler Bank.  

Based on our not-insignificant experience in the contractor market, our seven tips cover Business Planning & Presentation (tips 1-2), Banking & Finances (tips 3-5), and Client Acquisition & Retention (tips 6-7). `

Business Planning & Presentation

1. Polish your online presence

With contracting, first impressions count.

Before you start applying for freelance or temporary contracts, and even before you start contacting recruiters, conduct a review of how you look online.

For most contractors, this online review should be three-fold:

1. Update your LinkedIn profile. Make sure you have a good photo; profile and up-to-date work section that showcases your skills. If you were recently permanent, consider asking former employers for references – they can make a big difference.
2. Create a simple website or online portfolio. Consider your website or portfolio as a digital business card that outlines what you do, who you help, and how to contact you. It doesn’t have to be too fancy. Sites such as Wix or Squarespace make it quick, easy and inexpensive to do it yourself.
3. Check your socials. Some clients will browse your social media channels to see what you’re like. Check them carefully and consider removing anything outrageous or contentious that may put them off hiring you.

2. Write a punchy CV and elevator pitch

Even with a great online portfolio, contractors still need a CV.

As a genuinely self-employed business, the age-old CV remains an important marketing asset so it needs to look professional.

Create a ‘master version’ of your CV that you can easily tailor to different roles, with pre-written content you can drop in to match the opportunity of the moment’s requirements.

Next, create an ‘elevator pitch.’

Having this short pitch ready to go is also a great asset.

Whether you’re talking to potential clients, or recruiters, or are networking at an event, it pays to be able to concisely articulate what you do and how you do it, showcasing your skills and giving a few key, memorable reasons to hire you.

Banking & Finances

3. Get your finances contractor-ready

As a limited company contractor, you’re running a business, so you must keep your personal and professional finances separate.

Not only is this best practice for all contractors, but it also makes managing your money and dealing with taxes and HMRC payments easier.

Getting set up with the right business bank account can save you hours of admin, too.

Business-focused banks let contractors open an account in minutes, with free and paid-for accounts tailored to different business needs.

4. Make ‘Making Tax Digital’ (MTD) a priority

HMRC’s MTD rules have changed the way that contractors file tax returns.

Getting set up with Making Tax Digital correctly from the outset will save you time and effort in the long run.

Opening an MTD-compliant bank account will help you handle your tax obligations in the way that HMRC wants.

Digital invoicing, expense categorisation, money pots and accounting software integration are among the useful tools that such MTD-compliant accounts offer, making accounting less stressful and more accurate.

5. Speak to a (specialist) accountant early

With all the technology and software now available, it’s tempting to ‘DIY’ and save some money just as you’re starting out!

But when sorting your tax strategy, structure and compliance, it can pay dividends to talk to an expert; get such an adviser in your corner for peace of mind, and then use their expertise to help head off potentially nasty tax or compliance surprises later on.

Accountants who specialise in contractors (as opposed to generic or high street accountants) can advise deeply on whether you should set up as a sole trader, a limited company or if another structure, like an umbrella company, would be better.

The minefield of IR35 is worth getting their guidance on too, as getting paid in the most tax-efficient way may vary from contract to contract due to the roles you go forward for having differing IR35 statuses.

Client Acquisition & Retention

6. Tap into contractor recruiters and job boards

Even if you have contacts to look up or contracts already lined up, it’s prudent to plan ahead as a contractor.

Getting on the radar of recruiters and setting up alerts with relevant job boards are fundamental to establishing a wider, stronger network and client base.

You’ll know that you’ve ‘made it’ as a contractor, when you start getting exclusive access to roles that aren’t advertised anywhere else, thanks to the professional network you’ve developed.

7. Stay professional (even when working from home)

Contracting can mean juggling multiple clients, projects and deadlines simultaneously, from potentially all types of remote locations.

Acting professionally, including treating each assignment like it’s your very first, is vital to building and consolidating trust, so you’re hired again and get recommended to others. You can then ‘pick and choose’ your gigs.

Set realistic deadlines you can meet, be responsive, and dress appropriately for meetings and calls -- even if they’re from your kitchen table.  

And finally, fail to plan, plan to…

Starting out as a contractor can feel like an endless list of to-dos, but it doesn’t have to be complicated. With the right tools -- and a solid plan in place, you can get up and running in no time, particularly with a few choice appointments of advisers and partners to keep you on the right and profitable path.

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Editor's Note: The content of this article is not guidance from Zempler Bank.

Zempler Bank makes no representations or warranties of any kind, explicit or implied with respect to the contents of this article. Without limitation, Zempler Bank specifically excludes and disclaims all express or implied warranties and conditions to the extent permitted by law, and any action taken using such content is strictly at the user’s risk.